FinanceCalcs
Gas vs. Electric Car Calculator
Compare the true total cost of owning a gas car vs. an electric vehicle over time — including purchase price, fuel, maintenance, insurance, depreciation, and tax credits.
Find the break-even point where the EV becomes cheaper, and see exactly how much you save (or spend) over 1–10 years.
Gas vs. Electric Car Calculator
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- Gas Total Cost
- EV Total Cost
"The cheapest car to own is the one that costs the least to operate — not the one with the lowest sticker price."
-- Automotive Finance Principle
How this comparison works
This calculator computes total cost of ownership (TCO) for each vehicle over your chosen period. TCO includes every significant cost: purchase price, fuel or electricity, maintenance, insurance, and depreciation (the value lost as the vehicle ages).
The purchase price premium of an EV is front-loaded — you pay more on day one. But operating costs are typically lower every year: electricity is cheaper per mile than gasoline, and EVs have fewer moving parts (no oil changes, fewer brake jobs thanks to regenerative braking, no transmission service).
The break-even point is the year at which the EV's cumulative total cost drops below the gas vehicle's — when the annual savings finally offset the higher purchase price. For many buyers this is 3–7 years depending on gas prices, electricity rates, and the price gap between the two vehicles.
The federal tax credit (up to $7,500 for qualifying EVs under the Inflation Reduction Act) is subtracted from the EV's effective purchase price in year one, significantly moving the break-even point earlier.
lightbulb Example Comparison
Consider a $28,000 gas car at 32 MPG vs. a $42,000 EV at 4 miles/kWh, both driven 12,000 miles/year. With gas at $3.50/gallon and electricity at $0.13/kWh, the gas car costs about $1,313/year in fuel; the EV costs about $390/year — a saving of $923/year.
Add $600/year lower maintenance for the EV, and annual operating savings are roughly $1,500. The $14,000 price premium (after a $7,500 tax credit, net $6,500) breaks even in about 4.3 years. After 7 years the EV is $4,000+ cheaper in total.
Change gas to $4.50/gallon and the break-even moves to under 3 years. Change electricity to $0.25/kWh and it moves past 6 years. Gas prices and electricity rates are the biggest variables — use the calculator to test your local numbers.
Gas vs. EV FAQs
How much does it really cost to charge an EV?
The average US electricity rate is about $0.13–$0.16/kWh for home charging. A typical EV uses 3–4 miles per kWh, so 12,000 miles costs roughly $360–$640/year at home rates. Public fast charging is 2–4x more expensive — factor this in if you rely on it regularly.
Are EVs really cheaper to maintain?
Yes, materially. EVs skip oil changes ($100–$200/yr), transmission service, spark plugs, and many belt/hose replacements. Regenerative braking dramatically extends brake pad life. AAA estimates EVs average about $900/year in maintenance vs. $1,300 for gas vehicles, a $400 annual difference.
How does the $7,500 federal tax credit work?
The IRA's Clean Vehicle Credit provides up to $7,500 for new qualifying EVs. Eligibility depends on vehicle MSRP (caps at $55K for cars, $80K for trucks/SUVs), buyer income limits ($150K single, $300K joint), and North American final assembly. The credit is non-refundable — you must owe at least that much in federal taxes. As of 2024, it can be applied as a point-of-sale discount at participating dealers.
Do EVs depreciate faster than gas cars?
Historically yes, particularly earlier EV models. Battery technology improvements and strong used EV demand have stabilized depreciation rates for newer models, but EVs still typically depreciate slightly faster in the first few years. Tesla models and some popular EVs have shown competitive resale values. Use a slightly higher depreciation rate for EVs (16–20%) vs. gas (13–17%) as a conservative estimate.
Key terms
Total Cost of Ownership (TCO)
The complete cost of owning a vehicle over a period: purchase price minus residual value (depreciation), plus all operating costs (fuel/electricity, maintenance, insurance). TCO is the right number to compare when choosing between two vehicles with different price points.
Break-Even Point
The year at which the EV's cumulative TCO equals the gas car's — after which the EV becomes the cheaper option. Moving the break-even earlier: higher gas prices, lower electricity rates, larger tax credits, high annual mileage, and a smaller purchase price premium.
Miles per kWh (mi/kWh)
The EV equivalent of MPG. Most EVs achieve 3–5 miles per kWh. A higher number means more efficient use of electricity. The EPA's MPGe figure can also be used — divide MPGe by 33.7 to get approximate miles per kWh.
Regenerative Braking
An EV feature that captures kinetic energy during deceleration and converts it back to electricity, reducing range loss and dramatically extending brake pad life. One reason EV maintenance costs are lower than gas vehicles.
Level 2 Charging
240V home charging, typically installed by an electrician. Charges 20–30 miles of range per hour. A Level 2 charger plus installation costs $800–$2,000 but makes daily top-ups practical and avoids reliance on more expensive public charging.
Disclaimer: All calculators on this site are provided for informational and educational purposes only. Results are estimates based on the inputs you provide and mathematical formulas — they do not account for taxes, fees, inflation, risk, or other real-world factors that may affect financial outcomes. Past performance does not guarantee future results. Nothing on this site constitutes financial, investment, legal, or tax advice. Always consult a qualified professional before making financial decisions.
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